MSC is now part of the Hexagon family

A quick update: Hexagon just announced that its acquisition of MSC Software is complete, since it has obtained all of the regulatory approvals it needed for the deal.

Hexagon sees this as very strategic, enabling it to “connect the traditionally separate stages of design and production – integrating real-world data generated on the production floor with simulation data to further improve a customer’s ability to reveal and correct design limitations and production problems prior to manufacturing”. As such, MSC operate as a subsidiary in the division Manufacturing Intelligence division, where it joins brands such as Vero (CAM), PC-DMIS (metrology/measurement software) and other brands.

Hexagon says that MSC had pro forma revenue of $230 million in 2016 and would be accretive to Hexagon’s results (meaning positively profitable) – but that accounting rules require adjusting how deferred revenue is accounted for in 2017. Hexagon is budgeting for a €20 million to €30 million “adjustment” to appear on its financials and hints that this may make MSC neutral to profit.